Rural Consumers Pay twice for Govt's interference

Rural Consumers Pay twice for Government's interference in the Electricity Market

Rural consumers are being asked to help pay for dry year reserves yet there is no guarantee that they will have any power distribution beyond 2013.

Consumers across the board will bear the cost of Government's decision to have spare generation capacity lying idle waiting for a 1 in 60-year drought, says Federated Farmers of New Zealand (Inc) Vice President Charlie Pedersen.

"The Government is acting with urgency to help affected businesses but seems to have forgotten that Section 62 of the Electricity Act 1992 only requires electricity distributors to maintain services to the rural community up until 2013.

"The maintenance of the rural network up to and beyond 2013 is an issue of vital importance to the rural sector.

"The Government insists on tinkering with the electricity market but nothing is happening to address maintenance of rural infrastructure."

© Scoop Media